Nufarm reports strong first half profits

Victoria, Australia-based farm chemicals group Nufarm Ltd. surpassed market forecasts, partially based on stronger than expected growth in Europe and North America, reports Reuters. Despite the strong showing, Nufarm did not change its full-year profit growth forecast of around 34% to US $149 million -- an amount analysts say is probably a conservative estimate. Nufarms earnings in previous years have typically been skewed 80% towards the second-half, based on a heavier reliance on sales in Australia. This year, says Managing Director Doug Rathbone, the second-half is likely to make up around 70% of earnings.

Rathbone says North America and Europe will help drive the companys growth in the second half, bolstered by last years acquisitions, new products, and sales to new sectors such as cotton growers. According to Rathbone, Nufarm is unlikely to pursue acquisitions for the next few months; however, the company may still be looking at a piece of Dow Chemical Cos agricultural sciences unit, which is estimated to fetch between $5 billion and $7 billion. "Well hang around the hoop," Rathbone said, noting that Dows entire ag business was far too big for Nufarm. "Were always interested in things that are accretive and work well for our business."